FXStreet (Bali) - The FX Strategy Team at TD Securities reports on the CFTC Commitments of Traders Report - Week Ending Tuesday, June 3rd - , noting that specs increased longs in USD.

Key Quotes

"Speculative investors and CTA-type accounts ramped-up their net long USD position during the week ended on June 3rd ahead of big risk events such as central bank decisions from the RBA, BoC, ECB, and BoE, and US payrolls this morning."

According to the latest Commitment of Traders Report, the aggregate positioning change led to an increase in implied USD net longs from US$2.7 billion to US$6.6 billion, the highest since March 11th."

"The largest moves were registered in EUR and JPY positioning, with both currencies seeing sizeable net short extensions. Net EUR shorts went from -16.6k contracts to -33.0k, while JPY net shorts were extended by 15.2k contracts to a total of –74.2k."

"MXN remains the darling of speculative investors and CTA accounts. Net longs were extended from 83.3k to 86.0k, the most bullish bet on MXN since late May of last year.

"GBP experienced a minor net long reduction, going from +35.3k to +35.0k contracts."

"Among the commodity currencies, AUD saw a considerable change in positioning, with net longs being extended by 5.7k contracts to a total of +21.5k contracts. This bullish tone contrasts with the changes in positioning adopted towards NZD and CAD. Net NZD longs were scaled back marginally to +17.5k, whereas CAD saw a modest short extension from –21.8k to –22.7k contracts."

"Lastly, CHF saw relatively large short covering, with net shorts reduced from –3.9k to –2.0k contracts."

Related Articles
  1. Forex Education

    Four Currencies Under the Spotlight in 2016

    With currencies having become the “tail that wags the dog,” in terms of their impact on the global economy, these four currencies will be under the spotlight in 2016.
  2. Forex Fundamentals

    These Currencies Are The Biggest Losers Of The Stock Downturn

    Here’s a list of the hardest-hit currencies amid the global stock market mayhem.
  3. Forex Strategies

    Will the Euro Continue to Rally? (EUO)

    The euro is rallying. Should investors chase this performance or is the real opportunity on the other side of the trade?
  4. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  5. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  6. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  7. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  8. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  9. Investing

    Financial News Comparison: Bloomberg Vs. Reuters (BAC, GOOG)

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  10. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
Trading Center